Established a bridge head to the ever-expanding Chinese automobile facility market
Apr-1 2005
LG International made an agreement on provision of automobile mold facility with Jianghuai Automobile Co. LTD., Anhui, China, which is worth 14 million dollars, on February 2, 2005.
Jianghuai Automobile is a truck & bus maker in China, which has an annual production capacity of 170,000 vehicles, and has assembled 25,000 cars of STAREX per year under technical alliance with Hyundai Motors since February 2003.
The commercial vehicle market of China is expected to produce a great volume of new demand thanks to the grand development project for western Chinese area, the Yellow river embankment project and a gas delivery project(a project to deliver the natural
gas of the western area to the eastern area via a pipeline).
So, LG International tried to open the Chinese vehicle facility market from 2 years ago through alliance with V-ENS, a Korean car engineering company. As a result, the company exported the mold related products being worth 1 million dollars to Shanghai GM in 2004, and concluded this project worth 14 million dollars which is a large-scale agreement as a mold supply contract.
This agreement will provide LG International with the future opportunities to supply not only the mold facilities but also automobile related engineering services and other various facilities to over 200 automobile companies in China.
LG International is planning to accelerate the export to China, a strategic export market since it added the machinery and facilities to the existing export items focused on petrochemical and IT products.
